Autozone Inc 10-Q for FY2025 Q2

Autozone Inc (AZO)

10-Q 2025-03-21 For: 2025-02-15

Added on April 07, 2026

About this 10-Q

Autozone Inc filed this 10-Q on March 21, 2025, covering the quarter ended February 15, 2025 (FY2025 Q2).

Headline figures

Quarter ended February 15, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $3.95B; up 2.4% from $3.86B a year earlier
Net income: $487.92M; down 5.3% from net income of $515.03M a year earlier
Diluted EPS: $28.29; down 2.1% from $28.89 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


☒		Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
		For the quarterly period ended February 15, 2025 or

☐		Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
		For the transition period from _______ to ________.

		Commission file number 1-10714


Nevada	62-1482048
(State or other jurisdiction of	(I.R.S. Employer Identification No.)
incorporation or organization)


123 South Front Street, Memphis, Tennessee	38103
(Address of principal executive offices)	(Zip Code)

Title of Each Class		Trading Symbol(s)		Name of Each Exchange on which Registered
Common Stock ($0.01 par value)		AZO		New York Stock Exchange


Large accelerated filer ☒	Accelerated filer ☐
Non-accelerated filer ☐	Smaller reporting company ☐
Emerging growth company ☐


PART I.		FINANCIAL INFORMATION	3
	Item 1.	Financial Statements	3
		CONDENSED CONSOLIDATED BALANCE SHEETS	3
		CONDENSED CONSOLIDATED STATEMENTS OF INCOME	4
		CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME	4
		CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS	5
		CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT	6
		NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	7
		REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	17
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	26
	Item 4.	Controls and Procedures	26
PART II.		OTHER INFORMATION	26
	Item 1.	Legal Proceedings	26
	Item 1A.	Risk Factors	27
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	27
	Item 3.	Defaults Upon Senior Securities	27
	Item 4.	Mine Safety Disclosures	27
	Item 5.	Other Information	27
	Item 6.	Exhibits	27
SIGNATURES			29


	February 15,		August 31,
(in thousands)	2025		2024

Assets
Current assets:
Cash and cash equivalents	$	300,905	$	298,172
Accounts receivable		597,404		545,575
Merchandise inventories		6,588,586		6,155,218
Other current assets		315,703		307,794
Total current assets		7,802,598		7,306,759

Property and equipment:
Property and equipment		11,759,884		11,305,125
Less: Accumulated depreciation and amortization		(5,310,755)		(5,121,586)
		6,449,129		6,183,539

Operating lease right-of-use assets		3,120,826		3,057,780
Goodwill		302,645		302,645
Deferred income taxes		97,308		83,689
Other long-term assets		343,773		242,126
Total long-term assets		3,864,552		3,686,240
Total assets	$	18,116,279	$	17,176,538

Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable	$	7,784,717	$	7,355,701
Current portion of operating lease liabilities		306,185		266,855
Accrued expenses and other		1,023,860		1,060,746
Income taxes payable		152,595		30,941
Total current liabilities		9,267,357		8,714,243

Long-term debt		9,052,099		9,024,381
Operating lease liabilities, less current portion		3,007,455		2,960,174
Deferred income taxes		475,279		447,067
Other long-term liabilities		771,862		780,287

Commitments and contingencies

Stockholders’ deficit:
Preferred stock, authorized 1,000 shares; no shares issued		—		—
Common stock, par value $.01 per share, authorized 200,000 shares; 16,822 shares issued and 16,747 shares outstanding as of February 15, 2025; 17,451 shares issued and 16,926 shares outstanding as of August 31, 2024		168		175
Additional paid-in capital		1,671,200		1,621,553
Retained deficit		(5,421,243)		(4,424,982)
Accumulated other comprehensive loss		(407,589)		(361,618)
Treasury stock, at cost		(300,309)		(1,584,742)
Total stockholders’ deficit		(4,457,773)		(4,749,614)
Total liabilities and stockholders' deficit	$	18,116,279	$	17,176,538


	Twelve Weeks Ended				Twenty-Four Weeks Ended
	February 15,		February 10,		February 15,		February 10,
(in thousands, except per share data)	2025		2024		2025		2024

Net sales	$	3,952,012	$	3,859,126	$	8,231,652	$	8,049,403
Cost of sales, including warehouse and delivery expenses		1,823,611		1,779,474		3,835,194		3,755,735
Gross profit		2,128,401		2,079,652		4,396,458		4,293,668
Operating, selling, general and administrative expenses		1,421,634		1,336,410		2,848,542		2,701,822
Operating profit		706,767		743,242		1,547,916		1,591,846
Interest expense, net		108,822		102,619		216,451		194,004
Income before income taxes		597,945		640,623		1,331,465		1,397,842
Income tax expense		110,022		125,593		278,609		289,349
Net income	$	487,923	$	515,030	$	1,052,856	$	1,108,493

Weighted average shares for basic earnings per share		16,788		17,319		16,850		17,514
Effect of dilutive stock equivalents		457		509		457		517
Weighted average shares for diluted earnings per share		17,245		17,828		17,307		18,031

Basic earnings per share	$	29.06	$	29.74	$	62.48	$	63.29
Diluted earnings per share	$	28.29	$	28.89	$	60.83	$	61.48


	Twelve Weeks Ended February 15, 2025
								Accumulated
	Common			Additional				Other
	Shares	Common		Paid-in		Retained		Comprehensive		Treasury
(in thousands)	Issued	Stock		Capital		Deficit		Loss		Stock		Total

Balance at November 23, 2024	17,495	$	175	$	1,684,064	$	(3,860,049)	$	(407,155)	$	(2,089,956)	$	(4,672,921)
Net income	—		—		—		487,923		—		—		487,923
Total other comprehensive loss	—		—		—		—		(434)		—		(434)
Retirement of treasury shares	(710)		(7)		(69,878)		(2,049,117)		—		2,119,002		—
Purchase of 100 shares of treasury stock	—		—		—		—		—		(329,355)		(329,355)
Issuance of common stock under stock options and stock purchase plans	37		—		28,300		—		—		—		28,300
Share-based compensation expense	—		—		28,714		—		—		—		28,714
Balance at February 15, 2025	16,822	$	168	$	1,671,200	$	(5,421,243)	$	(407,589)	$	(300,309)	$	(4,457,773)


	Twelve Weeks Ended February 10, 2024
								Accumulated
	Common			Additional				Other
	Shares	Common		Paid-in		Retained		Comprehensive		Treasury
(in thousands)	Issued	Stock		Capital		Deficit		Loss		Stock		Total

Balance at November 18, 2023	18,984	$	190	$	1,548,510	$	(2,365,815)	$	(210,359)	$	(4,186,197)	$	(5,213,671)
Net income	—		—		—		515,030		—		—		515,030
Total other comprehensive income	—		—		—		—		5,460		—		5,460
Retirement of treasury shares	(1,703)		(17)		(142,391)		(4,128,131)		—		4,270,539		—
Purchase of 84 shares of treasury stock	—		—		—		—		—		(223,811)		(223,811)
Issuance of common stock under stock options and stock purchase plans	70		1		56,890		—		—		—		56,891
Share-based compensation expense	—		—		22,780		—		—		—		22,780
Balance at February 10, 2024	17,351	$	174	$	1,485,789	$	(5,978,916)	$	(204,899)	$	(139,469)	$	(4,837,321)


	Twenty-Four Weeks Ended February 15, 2025
								Accumulated
	Common			Additional				Other
	Shares	Common		Paid-in		Retained		Comprehensive		Treasury
(in thousands)	Issued	Stock		Capital		Deficit		Loss		Stock		Total

Balance at August 31, 2024	17,451	$	175	$	1,621,553	$	(4,424,982)	$	(361,618)	$	(1,584,742)	$	(4,749,614)
Net income	—		—		—		1,052,856		—		—		1,052,856
Total other comprehensive loss	—		—		—		—		(45,971)		—		(45,971)
Retirement of treasury shares	(710)		(7)		(69,878)		(2,049,117)		—		2,119,002		—
Purchase of 260 shares of treasury stock	—		—		—		—		—		(834,569)		(834,569)
Issuance of common stock under stock options and stock purchase plans	81		—		64,302		—		—		—		64,302
Share-based compensation expense	—		—		55,223		—		—		—		55,223
Balance at February 15, 2025	16,822	$	168	$	1,671,200	$	(5,421,243)	$	(407,589)	$	(300,309)	$	(4,457,773)


	Twenty-Four Weeks Ended February 10, 2024
								Accumulated
	Common			Additional				Other
	Shares	Common		Paid-in		Retained		Comprehensive		Treasury
(in thousands)	Issued	Stock		Capital		Deficit		Loss		Stock		Total

Balance at August 26, 2023	18,936	$	189	$	1,484,992	$	(2,959,278)	$	(190,836)	$	(2,684,961)	$	(4,349,894)
Net income	—		—		—		1,108,493		—		—		1,108,493
Total other comprehensive loss	—		—		—		—		(14,063)		—		(14,063)
Retirement of treasury shares	(1,703)		(17)		(142,391)		(4,128,131)		—		4,270,539		—
Purchase of 663 shares of treasury stock	—		—		—		—		—		(1,725,047)		(1,725,047)
Issuance of common stock under stock options and stock purchase plans	118		2		98,337		—		—		—		98,339
Share-based compensation expense	—		—		44,851		—		—		—		44,851
Balance at February 10, 2024	17,351	$	174	$	1,485,789	$	(5,978,916)	$	(204,899)	$	(139,469)	$	(4,837,321)


	February 15, 2025
(in thousands)	Level 1		Level 2		Level 3		Fair Value

Other current assets	$	18,676	$	10,138	$	—	$	28,814
Other long-term assets		40,084		53,290		—		93,374
	$	58,760	$	63,428	$	—	$	122,188


	August 31, 2024
(in thousands)	Level 1		Level 2		Level 3		Fair Value

Other current assets	$	26,697	$	11,734	$	—	$	38,431
Other long-term assets		27,031		56,696		—		83,727
	$	53,728	$	68,430	$	—	$	122,158


	February 15, 2025
	Amortized		Gross		Gross
	Cost		Unrealized		Unrealized		Fair
(in thousands)	Basis		Gains		Losses		Value

Corporate debt securities	$	30,636	$	61	$	(236)	$	30,461
Government bonds		55,152		292		(680)		54,764
Mortgage-backed securities		21,766		73		(297)		21,542
Asset-backed securities and other		15,397		41		(17)		15,421
	$	122,951	$	467	$	(1,230)	$	122,188


	February 15, 2025
	Amortized		Fair
(in thousands)	Cost Basis		Value

Due within one year	$	29,953	$	28,814
Due after one year through five years		45,596		46,679
Due after five years through ten years		32,028		31,520
Due after ten years		15,374		15,175
	$	122,951	$	122,188


	February 15,		August 31,
(in thousands)	2025		2024

3.250% Senior Notes due April 2025, effective interest rate 3.36%	$	400,000	$	400,000
3.625% Senior Notes due April 2025, effective interest rate 3.78%		500,000		500,000
3.125% Senior Notes due April 2026, effective interest rate 3.28%		400,000		400,000
5.050% Senior Notes due July 2026, effective interest rate 5.09%		450,000		450,000
3.750% Senior Notes due June 2027, effective interest rate 3.83%		600,000		600,000
4.500% Senior Notes due February 2028, effective interest rate 4.43%		450,000		450,000
6.250% Senior Notes due November 2028, effective interest rate 6.46%		500,000		500,000
3.750% Senior Notes due April 2029, effective interest rate 3.86%		450,000		450,000
5.100% Senior Notes due July 2029, effective interest rate 5.30%		600,000		600,000
4.000% Senior Notes due April 2030, effective interest rate 4.09%		750,000		750,000
1.650% Senior Notes due January 2031, effective interest rate 2.19%		600,000		600,000
4.750% Senior Notes due August 2032, effective interest rate 4.76%		750,000		750,000
4.750% Senior Notes due February 2033, effective interest rate 4.70%		550,000		550,000
5.200% Senior Notes due August 2033, effective interest rate 5.22%		300,000		300,000
6.550% Senior Notes due November 2033, effective interest rate 6.71%		500,000		500,000
5.400% Senior Notes due July 2034, effective interest rate 5.54%		700,000		700,000
Commercial paper, weighted average interest rate 4.50% at February 15, 2025 and 5.40% at August 31, 2024		602,000		580,000
Total debt before discounts and debt issuance costs		9,102,000		9,080,000
Less: Discounts and debt issuance costs		49,901		55,619
Long-term debt	$	9,052,099	$	9,024,381


			Net
	Foreign		Unrealized
	Currency		Gain (Loss)
(in thousands)	and Other⁽¹⁾		on Securities		Derivatives		Total

Balance at November 23, 2024	$	(396,261)	$	(652)	$	(10,242)	$	(407,155)
Other comprehensive (loss) income before reclassifications⁽²⁾		(903)		82		—		(821)
Amounts reclassified from Accumulated other comprehensive loss⁽²⁾		—		(17)		404		387
Balance at February 15, 2025	$	(397,164)	$	(587)	$	(9,838)	$	(407,589)


			Net
	Foreign		Unrealized
	Currency		Gain (Loss)
(in thousands)	and Other⁽¹⁾		on Securities		Derivatives		Total

Balance at November 18, 2023	$	(196,778)	$	(1,556)	$	(12,025)	$	(210,359)
Other comprehensive income before reclassifications⁽²⁾		4,339		717		—		5,056
Amounts reclassified from Accumulated other comprehensive loss⁽²⁾		—		—		404		404
Balance at February 10, 2024	$	(192,439)	$	(839)	$	(11,621)	$	(204,899)


	Twelve Weeks Ended
						Constant Currency⁽¹⁾
		February 15, 2025		February 10, 2024		February 15, 2025		February 10, 2024
Domestic		1.9	%	0.3	%	1.9	%	0.3	%
International		(8.2)	%	23.9	%	9.5	%	10.6	%
Total Company		0.5	%	3.0	%	2.9	%	1.5	%


	A		B		A-B=C		D		C+D
	Fiscal Year		Twenty-Four		Twenty-Nine		Twenty-Four		Trailing Four
	Ended		Weeks Ended		Weeks Ended		Weeks Ended		Quarters Ended
	August 31,		February 10,		August 31,		February 15,		February 15,
(in thousands, except percentage)	2024		2024		2024		2025		2025

Net income	$	2,662,427	$	1,108,493	$	1,553,934	$	1,052,856	$	2,606,790
Adjustments:
Interest expense		451,578		194,004		257,574		216,451		474,025
Rent expense⁽¹⁾		447,693		198,405		249,288		210,552		459,840
Tax effect⁽²⁾		(182,552)		(79,659)		(102,893)		(86,682)		(189,575)
Adjusted after-tax return	$	3,379,146	$	1,421,243	$	1,957,903	$	1,393,177	$	3,351,080

Average debt⁽³⁾									$	8,943,172
Average stockholders’ deficit⁽³⁾										(4,711,173)
Add: Rent x 6⁽¹⁾										2,759,040
Average finance lease liabilities⁽³⁾										369,622
Invested capital									$	7,360,661

Adjusted after-tax ROIC										45.5%


	Trailing Four Quarters Ended
(in thousands)	February 15, 2025		February 10, 2024

Total lease cost, per ASC 842	$	614,312	$	546,195
Less: Finance lease interest and amortization		(113,698)		(93,591)
Less: Variable operating lease components, related to insurance and common area maintenance		(40,774)		(34,740)
Rent expense	$	459,840	$	417,864


				Total Number of	Maximum Dollar
				Shares Purchased as	Value that May Yet
	Total Number	Average		Part of Publicly	Be Purchased Under
	of Shares	Price Paid		Announced Plans or	the Plans or
Period	Purchased	per Share		Programs	Programs

November 24, 2024 to December 21, 2024	49,070	$	3,274.40	49,070	$	1,498,080,423
December 22, 2024 to January 18, 2025	35,559		3,269.37	35,559		1,381,824,739
January 19, 2025 to February 15, 2025	15,450		3,393.19	15,450		1,329,399,937
Total	100,079	$	3,290.95	100,079	$	1,329,399,937

		Restated Articles of Incorporation of AutoZone, Inc. Incorporated by reference to Exhibit 3.1 to the Quarterly Report on Form 10-Q for the quarter ended February 13, 1999.
3.1		Restated Articles of Incorporation of AutoZone, Inc. Incorporated by reference to Exhibit 3.1 to the Quarterly Report on Form 10-Q for the quarter ended February 13, 1999.

3.2		Eighth Amended and Restated By-Laws of AutoZone, Inc. Incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K dated March 23, 2023.
10.1*		Form of Grant Notice and Award Agreement for Stock Options granted to Officers under the AutoZone, Inc. 2020 Omnibus Incentive Award Plan (Extended Vesting).

15.1*		Letter Regarding Unaudited Interim Financial Statements.

31.1*		Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2*		Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1*		Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2*		Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101. INS		Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

101.SCH		Inline XBRL Taxonomy Extension Schema Document

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document

104		The cover page for the Company’s Quarterly Report on Form 10-Q for the quarter ended February 15, 2025, has been formatted in Inline XBRL.


	AUTOZONE, INC.

	By:	/s/ JAMERE JACKSON
	Jamere Jackson
	Chief Financial Officer
	(Principal Financial Officer)


	By:	/s/ J. SCOTT MURPHY
	J. Scott Murphy
	Vice President, Controller (Principal Accounting Officer)

Dated: March 21, 2025


March 21, 2025

	/s/ PHILIP B. DANIELE, III
	Philip B. Daniele, III
	President and Chief Executive Officer
	(Principal Executive Officer)